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Antecedents and consequences of the introduction of flexible benefit plans in China

Lin, Zhaohong and Kelly, John and Trenberth, Linda (2011) Antecedents and consequences of the introduction of flexible benefit plans in China. International Journal of Human Resource Management 22 (5), pp. 1128-1145. ISSN 0958-5192.

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The present study had two aims. The first was to explore the extent of flexible benefit plans (flex plans) within China and to make predictions about future trends. The second aim was to examine the relationships between the use of flex plans and two measures of labour market performance: the ability to attract essential employees and the level of labour turnover. The results from a survey of 324 firms in China reflecting a response rate of 32.4% showed that although there are presently a limited number of firms that adopt flex plans, the number is likely to increase in the next few years. Second, the probability of the adoption of flex plans was not found to vary with the mode of ownership and firm location. Third, flex plans were found to be adopted by firms for several practical reasons including their perceived role in cost containment, improved recruitment and retention, enhancement of job satisfaction and labour productivity. The take-up of such plans, however, was found to be inhibited by perceived administrative burdens and costs, and the limited number of staff qualified in benefit provision. Finally, the adoption of flex plans was significantly related to labour turnover and improved recruitment capacity.

Item Type: Article
Keyword(s) / Subject(s): China, employee benefits, flex plans, labour market performance, reward systems
School or Research Centre: Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Management
Depositing User: Linda Trenberth
Date Deposited: 07 Dec 2012 17:21
Last Modified: 11 Oct 2016 15:27

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